400+ Jobs lost in Saint John and Surrounding Area with Closing of Picadilly Mine.
To mark further economic turmoil in the province of New Brunswick, Potash Corp (NYSE - POT) has annouced they will be closing their newly constructed Picadilly Mine. The small town of Sussex (4300) will suffer the biggest economical blow however the impacts will be felt in Saint John, Moncton and Fredericton.
Sussex Mayor Marc Thorn is upset about the closure of the mine as it supplied many individuals in the community with Salaries between $80,000 and $120,000 annually. The mine was formerly known as a secure employer as they had been in operation for over 30 years, however with falling prices globally the mine is no longer economically feasible.
In the last 52 weeks Potash Corps shares have dropped from $37.00 per share down to $15.60, marking a 50% decrease in net worth.
Joel Richardson, vice-president of the New Brunswick and P.E.I. divisions of the Canadian Manufacturers and Exporters, says the total jobs losses could be about 1,000 with suppliers included in the count.
"Companies in the restaurant, hospitality, accommodations, metal-working companies, manufacturers that have helped support the potash mine in Sussex will also be impacted by this," said Richardson.
The Gallant government, which campaigned on the promise of creating jobs, should now be careful about raising taxes on businesses, he said.
"We would suggest that the province needs to give a very serious second look to those options it's recommending within the provincial budget," Richardson said.
